Bitcoin (BTC) has been stuck in a range for the past several months, causing a drop in spot volumes. Coinbase, one of the largest cryptocurrency exchanges, reported a 52% decrease in spot trading volume in Q3 2023 compared to the same period in 2022. While the short-term outlook for Bitcoin remains uncertain, long consolidations are usually followed by a significant price action. However, predicting the direction of a breakout is challenging. Despite the stagnant price, Bitcoin has managed to stay above $25,000 in recent months, increasing the potential for an upside breakout.
Investing legend Paul Tudor Jones expressed his bearish view on the equities markets due to the Israel–Hamas conflict, stating that it may lead to a risk-off sentiment. In such a scenario, Jones believes that gold and Bitcoin would benefit.
Analyzing the charts of the top 10 cryptocurrencies, it appears that Bitcoin sliced through the 20-day exponential moving average but found support at the 50-day simple moving average. The bulls successfully defended this level, but there seems to be a lack of demand at higher levels. If the bears manage to break below the 50-day SMA, the price could retest the strong support at $26,000.
Ether (ETH) dipped to a critical support level at $1,531 but was successfully held by the bulls. However, the bearish momentum may still be present, as the price is struggling to rise above the moving averages. If the price turns down sharply from the 20-day EMA, it could fall below $1,531 and descend to $1,368.
Binance Coin (BNB) fell to a strong support level at $203, but the long tail on the candlestick indicates that the bulls are defending this level with force. To gain an advantage, the bulls will need to move the price above the moving averages and the downtrend line, potentially leading to an up-move to $235 and $250. However, if the price turns down from the moving averages, it could lead to a break below the $203 support level and initiate a downward move to $183.
XRP fell below the uptrend line, suggesting a reduction in bullish pressure. The price is likely to continue oscillating between $0.41 and $0.56. A break and close above the moving averages would indicate strength and potentially drive the price to the overhead resistance at $0.56, signaling the start of a new potential uptrend.
Solana (SOL) slipped below the 20-day EMA, indicating that the bears are maintaining their pressure. If the bears manage to drag the price below the 50-day SMA, the price could slump to $17.33. On the other hand, if the price rises above $22.50, it could tilt the advantage in favor of the buyers.
Cardano (ADA) has formed long tails on successive candlesticks but has failed to start a recovery, suggesting a lack of demand at higher levels. If the price continues to fall below $0.24, it may indicate that the bears are in control. However, a relief rally is possible if the support holds, with the first target being the moving averages.
Dogecoin (DOGE) has been trading below the $0.06 support, indicating a general acceptance of lower levels. The bears will try to sink the price to the vital support at $0.055, where strong buying is expected. If the price rebounds, it may consolidate between $0.055 and $0.06. However, the bears currently have the upper hand, and a recovery can only occur if the price moves above the moving averages.
Toncoin (TON) has been in a corrective phase, with profit booking pulling the price below the 50-day SMA. If the bulls manage to push the price back above the moving averages, it may indicate that the break below the 50-day SMA was a bear trap. On the other hand, a turn down from the moving averages could increase the risk of a fall to $1.60.
Polkadot (DOT) has reached a solid support level at $3.50 after a continued decline. If the price turns down from the 20-day EMA, it may signal that traders are selling on relief rallies and increase the chances of a drop below $3.50. However, if the price rises above the 20-day EMA, it may indicate a rejection of lower levels and trap the bears in a short squeeze.
Polygon (MATIC) is weakening toward a critical support level at $0.49, suggesting that the bulls are not taking risks in buying at higher levels. If the price breaks below this support, the bearish sentiment may continue. However, the bulls are expected to buy this dip aggressively and maintain range-bound action.
Overall, the cryptocurrency market is facing uncertainty, with Bitcoin stuck in a range and other cryptocurrencies showing mixed price actions. Traders need to stay vigilant as long consolidations are often followed by significant movements.